If above 17,208, Sensex may test 17,350
Markets opened with a neutral bias and traded in a narrow range of 17,208 to 17,012 / 5,185 to 5,121. On the daily chart, we are observing a candlestick pattern which resembles a ``Doji``. If indices manage to trade convincingly above 17,208/ 5,185 level then they may test 17,350 / 5,230 level,``
``The above mentioned pattern will have its bearish implication only if indices trade below yesterday`s low of 17,012 / 5,121 level. The activation of this pattern can attract some selling pressure which can drag indices to the lower levels 16,900 - 16640 / 5,100 - 5,010
The indices have closed at the lower end of the intraday range as the bulls were unable to offer support at higher levels during the session. The intraday range specified for the Nifty between the 5200 / 5110 held as the Nifty kept within these levels, thereby validating our intraday levels. The coming session is likely to witness resistance at the 5175 levels on advances above which the 5225 maybe tested. Support is likely at the 5100 levels below which the 5050 maybe tested. The bullish pivot for the session is likely at the 5165 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5140 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.
The daily candle chart of the Nifty shows a gap down inverted hammer candle, which was filled intraday and the 5100 - 5110 area holding up for now. As long as the bulls keep the Nifty above the 5165 threshold with higher volumes and open interest expansion, the bears will be forced to cover shorts. The Nifty sustaining below the 5140 levels may trigger a fresh bout of declines. Being a long weekend, buying conviction is expected to taper off towards the end of the session.
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